Hindustan Unilever Limited (HUL) is reportedly in the final stages of discussions to acquire Jaipur-based skincare brand Minimalist, a direct-to-consumer (D2C) company valued at approximately Rs 3,000 crore. If the deal goes through, it will represent a major leap for Minimalist, which has seen its valuation soar from Rs 630 crore to Rs 3,000 crore in just three years. This move is poised to become one of the largest recent acquisitions in the D2C sector, according to industry insiders.
Impressive Growth and Profit Margins
Launched in 2020, Minimalist has gained significant traction due to its focus on ingredient transparency and scientifically backed skincare products. The company has experienced robust growth, with its revenue for the fiscal year ending March 2024 estimated at Rs 350 crore, marking a substantial 89% increase from Rs 184 crore in the previous fiscal year. Additionally, Minimalist has maintained profitability for four consecutive years, which is expected to make the company an attractive acquisition for HUL.
Timeline and Ownership After Acquisition
Sources indicate that HUL plans to finalize the deal within the current quarter (Q4FY25), with the company aiming for majority ownership of Minimalist. However, the co-founders of the brand, Mohit and Rahul Yadav, are expected to retain a stake in the company post-acquisition, continuing to play a role in its future direction.
Previous Investments and Strategic Interest
Minimalistâs rapid growth has been supported by early-stage investments, including Series A funding from Unilever Ventures and Sequoia Capital India (now known as Peak XV Partners). This partnership has been key to the brandâs expansion. HUL has had its sights set on Minimalist for several years, particularly after the brand raised Rs 110 crore in funding from Unilever Ventures, the venture capital arm of HULâs UK-based parent company.
Expanding Portfolio in Health and Wellness
This potential acquisition aligns with HULâs strategic focus on expanding its footprint in the health and wellness market. In late 2022, the company announced plans to acquire stakes in two health-focused startups: Zywie Ventures, which offers plant-based wellness products through its OZiva brand, and Nutritionalab, known for its Wellbeing Nutrition line. The acquisition of Minimalist would further cement HULâs presence in this growing segment.
The deal is seen as a significant step for HUL in strengthening its direct-to-consumer offerings, especially in the fast-growing skincare and wellness markets.
